What if you could magically turn your trusty ol’ iPod Touch into an iPhone of sorts? Would you still buy a 3GS or iPhone 4? Apparently, there’s a company in China (figures) that’s on the verge of releasing a slip-on case by Yosion Technology (the Apple Peel 520 case) that will do just that. According to Engadget:

Powered by an Infineon baseband chip, this adapter not only offers voice calling and text messaging (presumably requiring a jailbroken iPod touch for the apps; GPRS not possible yet), but it also doubles up as an 800mAh battery and provides 4.5 hours of call time or 120 hours of standby juice. We’re told this cheeky hack’s coming out in China as early as this week for somewhere between ¥300 ($44) and ¥500 ($74)

For all you iPod Touch owners, don’t get your hopes too high just yet. Seems Yosion doesn’t have an official website, nor is there a full spec sheet to gather more intel on this gizmo. Not to mention, Apple will never approve the necessary Phone apps to run with the Peel case, so it’s almost a given that you’ll have to jailbreak the iPod to get this hack to work. If this case does become reality however, it’s likely that scores of Touch owners will attempt to get their hands on one. Check out the demo video after the gap.